DS Smith has released its full-year results for the financial year ending on April 30, 2024. The results reflect a robust performance despite facing a weak consumer demand environment and high inflation.

Financial Highlights:

The company reported a robust adjusted operating profit of £701 million, down from £861 million in the previous financial year. This performance aligns with management expectations despite the challenging market conditions. The year saw a decline in like-for-like box volumes by 2%. However, there was a significant improvement in momentum, with a 2% growth in Q4 FY2023/24 compared to Q4 FY2022/23.

DS Smith attributes its strong performance to "strong customer relationships, innovation and high service levels, together with strong cost management, have partially offset downward pricing pressure." Despite the challenging market, these factors have helped the company mitigate some of the pressures from reduced pricing.

The company experienced lower free cash flow, mainly due to its current capital expenditure program and a working capital outflow driven by commodity prices. This has resulted in a net debt/EBITDA ratio of 2.1x, up from 1.3x in the previous year. Nonetheless, the underlying working capital metrics remain consistent with prior years, indicating stable financial management.

"We are pleased to have delivered a robust performance, despite the challenging environment," said Miles Roberts, Group Chief Executive. "Our focus on customers, quality, service, and innovation, along with our self-help productivity initiatives, has been crucial." He expressed pride in the company's continued progress in addressing customer sustainability challenges, highlighting that DS Smith achieved its target of replacing 1 billion units of plastic with fiber-based alternatives 16 months ahead of schedule.

The company's strategy emphasizes sustainability and innovation. DS Smith's commitment to replacing plastic with sustainable alternatives demonstrates its dedication to environmental stewardship. This achievement underscores the company's proactive approach to sustainability, aligning with global trends towards more eco-friendly business practices.

Throughout the year, DS Smith has maintained a strong focus on cost management and efficiency. These efforts have been vital in navigating the economic challenges posed by high inflation and fluctuating commodity prices. The company's ability to manage costs effectively while maintaining high service levels has been a key factor in its resilience.

Innovation continues to be a cornerstone of DS Smith's strategy. The company has invested in new technologies and processes to enhance its product offerings and improve operational efficiency. This focus on innovation has helped DS Smith stay competitive and meet the evolving needs of its customers.

"I am also very proud of the continued excellent progress in helping our customers’ sustainability challenges," Roberts noted. This statement reflects DS Smith's ongoing commitment to providing sustainable solutions that help customers reduce their environmental impact. The company's achievements in sustainability are a testament to its forward-thinking approach and dedication to creating a better future.

In conclusion, DS Smith's full-year results for 2023/24 showcase a strong performance amidst challenging market conditions. The company's focus on customer relationships, innovation, and sustainability has been instrumental in achieving these results. Despite the economic pressures, DS Smith remains committed to delivering high-quality, sustainable solutions and maintaining its position as a leader in the packaging industry.